‘Exciting’ time in evolution of DLOM
“There is no one generally accepted computational method” for DLOM, writes John Stockdale Sr. in the upcoming fifth edition of BVR's Guide to Discounts for Lack of Marketability.
Estate of Berg v. Commissioner
On appeal by the estate, the 8th Circuit Court of Appeals found that discounts of 20% for minority interest and 10% for lack of marketability of the estate shares were appropriately applied when determining the value of the estate’s 26.92% stock holdings.
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Efficiency Save valuable time with the easy-to-use toolkit that allows you to easily walk through the stout methodology. Trust Stout RSS has been around for 20+ years and is a trusted resource for 90% of the profession. Data Integrity Ensure your DLOM withstands scrutiny - every transaction has been rigorously screened. Have your cake and eat it, too. Your Winning Recipe to Determine a Discount for Lack of Marketability 770+ transactions DLOM Calculator Inflation Adjustor Tool Quarterly Updates 60 data fields Stout Ingredients Learn more at bvresources.com/stout The Stout Restricted Stock Study provides empirical support to quantify marketability discounts. With 770+ rigorously screened transactions and ...
Despite IPO slowdown, Valuation Advisors adds transactions
After posting over 200 initial public offerings (IPOs) in 2007, the IPO market has been extremely slow during the first half of 2008.
BVR announces new FMV DLOM calculator and free webinar
The FMV Restricted Stock Study™—the premier online database for determining discounts for lack of marketability—has the new addition of the FMV DLOM Calculator™.
Tax Court Finds 12% Minority Discount and 23% DLOM for Cash-Only FLP
In April 1999, Webster Kelley and his daughter and son-in-law (the Loudens) formed Kelley-Louden Business Properties LLC (KLBP LLC), and Kelley-Louden Ltd., a family limited partnership (KLLP).
3rd Quarter 2006 Control Premium Data Have Arrived . . .
We’ve just posted the 3rd Quarter 2006 update to the Mergerstat® / Shannon Pratt's Control Premium Study™ online ...
Audax PE invests in Stout
Audax Private Equity has agreed to make an investment in Stout, a firm that provides advisory services in corporate finance, valuation, financial disputes, and investigations.
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Very short holding periods could support substantial DLOM, new study says
...Aaron M. Stumpf (Stout Risius Ross) describes his firm’s (SRR) proprietary Restricted Stock Study ...
DLOM gauge spiked in 1Q2021, per updated pre-IPO study
The use of pre-IPO data is a widely used and accepted method for estimating a discount for lack of marketability (DLOM).
IRS stance on discounts to Partnership Profiles data refuted
At the recent Partnership Profiles’ “Appraising Family Limited Partnerships” course ...
New Study on LEAPS Put Options: DLOM clearly valuation-date specific
Ronald Seaman’s new study shows that costs of price protection/discounts vary by date and do not remain constant in size over time.
Survey: Which is the most commonly used DLOM method?
In our continuing coverage on determining the discount for lack of marketability (DLOM) (see BVWire™ #82-1), we’ve identified five methodologies that valuation practitioners most commonly use.
Stout Restricted Stock Study Demo Request
Stout Restricted Stock Study Demo Request | Business Valuation Resources Search Get the empirical support you need to quantify marketability discounts.The Stout Restricted Stock Study™ is a thoroughly vetted, restricted stock sourced discount for lack of marketability (DLOM) tool that provides empirical support to quantify marketability discounts. The Stout DLOM Calculator™, included with a subscription, is a robust tool that allows you to quickly implement the Stout methodology and determine a DLOM .Each restricted stock
Stock Price Discounts for Lack of Marketability: OTC Market Empirical Results 2005–2008
Discounts for lack of marketability reflect expectations of elapsed time and/or expenses in converting illiquid assets into cash and can be a key factor in pricing assets. Because discounts for lack of marketability address market phenomena, they are best assessed through empirical data from market-based transactions, such as over-the-counter (OTC) convertible debt pricing. Of the 3,270 OTC firms examined, the majority issued convertible debt at a stock conversion price discount to market, yielding a median ...
Dig deeper into restricted stock studies for DLOM
A common approach to developing a discount for lack of marketability (DLOM) when using restricted stock studies is to simply list their averages and use those figures in the estimate.
How to Use the Latest DLOM Study for the Johnson/Park Empirical Method
An example of how to apply the Johnson/Park empirical method, which is based on the fundamental concept of risk and reward. The annual study serves as a basis to determine how much of an increase in the rate of return is required to compensate investors for the lack of marketability of a subject interest.
Nondistributing partnerships show 46% discount from NAV
"Partnership Re-Sale Discounts Holding Their Own," Partnership Spectrum, May/June 1999, pp. 1-18. Reviewed by Russell T. Glazer, CPA, Horowitz, Waldman, Berretta & Maldow, LLP As the ...
BVR’s best-in-market valuation databases continue to grow
We’ve just added over 400 new private company transactions to BIZCOMPS ...
The recession’s effects on discounts for lack of marketability
A recent issue of the Wire included the article, “Reduced liquidity may lead to larger marketability discounts in the current economy,” featuring a comment made by Lance Hall.